A better way to finance your IT
10.12.2003 - Manufacturing Computer Solutions

CCL is a trailblazing IT financer, and one of the fastest growing firms in the UK. Ranked by Dun & Bradstreet as a Hot 100 company, CCL has made it possible for thousands of companies to install the latest IT by making it affordable. The same innovative, flexible financing has given software authors a significant competitive edge in getting their products to market.

CCL is an IT financer that works with industry direct. 60% of our clients are UK manufacturing SMEs, and understanding the challenges they face has been key to CCL’s success. Competition from Europe and beyond is now intense and even small enterprises, reliant on loyal local customers, now find themselves competing with global suppliers. Cutting costs is essential and cashflow is critical, as often the only way to maintain margins is to move fast and buy cheap raw materials on global markets. Ironically, it’s at this time, when every penny is tied-up in keeping the business afloat, that companies must make one of their biggest investments – technology.

For small, often family-run concerns, still using docking, clocking-on and paperbased systems, issues like compliance have turned IT from a good idea into a necessity. But with a typical ERP solution costing around £100,000 – £200,000 to buy, purchase is quite simply not an option. Even if a business has the cash to buy outright, using this precious resource to fund IT rarely makes economic sense.This can result in insufficient cash being left to build the business.

A recent survey found that companies in the manufacturing sector spend on average 2.67% of their annual turnover on technology, an increase of more than 1.5% in less than a year. It’s at this point that flexible lease financing looks an increasingly attractive option. Capital remains untouched, and free to use in the rest of the business.The costs can be spread over time and it is easier to plan. Lease payments may be treated as an operating cost, which can attract a tax benefit. With every penny spent by most SMEs now subject to the most rigorous internal scrutiny, these are powerful arguments to put before the IT purchase decision-makers.

Flexible financing: CCL’s flexible and innovative products add more significant advantages. CCL offers fixed rate financing – a compelling solution with interest rates likely to rise. There are other institutions offering funds for IT, but few can match CCL’s ability to tailor financing to meet the most demanding requirements. CCL has relationships with a wide portfolio of institutions – providing a breadth of options that no single bank is likely to match.

At CCL, we understand that in the manufacturing sector, most technology installations are bespoke, and we feel the financial package offered should be the same. We can match payment plans to implementation milestones.

Rental Exchange: CCL has overcome the problem of fastmoving technology and market change with its innovative Rental Exchange plan. As payments are made, customers accrue an allowance. This means that money becomes available for the next technology add on/upgrade, often with no increase in the monthly repayment.

Building the UK economy: In 10 years, CCL estimates it has contributed over $1 trillion to the economy. A major part of this is allowing companies to fund the IT they need to expand. This investment enables industry to trade more efficiently, increase profits, which in turn contributes to the economy. A recent case study illustrates that this is no idle boast. Walter- Broadley, a leading manufacturer of floor-cleaning machines, invested in a £ 150,000 CCL-financed MRP solution which played a key role in gaining the firm the largest contract in its history.

Support for software authors: CCL has forged partnerships with some of the UK’s leading authors that recognise the importance of offering their clients a rental option. This allows them to bring affordable solutions to market and accelerate the ROI. In addition, it shortens the sales cycle and can increase order values.

Vecta Software (a CCL partner) has achieved record market growth and moved into Deloitte & Touche’s Top 50, for Fast Track Growth for Technology Authors. This has been achieved by selling its products primarily using CCL’s Rental Exchange plan. CCL’s relationships with software authors are set to grow significantly as the IT industry moves towards rental/subscription. Software authors that do not have a rental offering could lose competitive advantage.

Achievements: CCL has funded over £500 million of technology, supplied over 8,000 customers and achieved an astonishing 64% growth over a four year period. Not surprisingly, these achievements have not gone unnoticed. The firm has gained a Trailblazer Award for Best Growth Company for Success in Technology Finance, and this year, managing director Suki Floyd was included in the prestigious Who’s Who in British Business Excellence, and was also a runner up for the Wessex Business Woman of The Year.

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